Stocks slipped into the red for the second straight session Wednesday amid choppy trading with turnover improved slightly as the investors continued to take some profit amid mixed corporate earnings declaration.
Market started off the trade with up move and stocks turned in green, but the up move could not sustain for long. DSEX, the prime index of the Dhaka Stock Exchange (DSE) ended at 5,109.42 points, shedding 19.41 points or 0.37 per cent.
The other two indices also closed in the red. The DS30, comprising blue chips lost 14.21 points or 0.73 per cent to close at 1,919.32 points. The DSE Shariah Index dropped 4.02 points or 0.33 per cent to close at 1,202.84 points.
Trading has recouped slightly on DSE and amounted to Tk 5.45 billion, registering an increase of 17.96 per cent over the previous session's three-month lowest value of Tk 4.62 billion.
The investors' attention was mostly concentrated on power, pharmaceuticals and banks - the sectors that accounted for 25 per cent, 13 per cent and 11 per cent respectively of the day's total turnover.
"The stock market closed with negative note for the second consecutive sessions as the investors' displayed their shaky confidence throughput the session," said International Leasing Securities in an analysis.
The overall positive movement of fuel and power and financial institutions help to offset the negative impact to some extent, said the International Leasing.
LankaBangla Securities said: "Investors continued to take some profit off the table amid mixed corporate earnings declaration".
Fear of political turbulence after the verdict of Jamaat-e-Islami chief Motiur Rahman Nizami in charges against him for war crime might have made the investors shaky, said the stock broker.
Among the major corporate updates, Building materials groups Holcim and Lafarge said Tuesday that they had formally notified the European Commission of their merger plan to create the world's biggest cement group, said the stock broker.
IDLC Investments said: "Market survived above 5,100 point-mark despite investors' weak confidence and low flow of funds".
Following the third quarter earnings and year-end corporate disclosures, investors continued to re-balance their portfolio position, said the merchant bank.
Market once again stays down as earnings keeps streaming in, and stocks remains under investors' surveillance. However, some major stocks tried to lift the market increasing with large volume during the end, said Zenith Investments.
"It is high time for the investors to enter at a lucrative price as index is most likely to head upwards again after the earning period is over," said the Zenith analysis.
"Market saw modest weakness as traders risk off their holdings amid verdict of Jamaat leader Motiur Rahman Nizami," said Sheltech Brokerage.
The port city bourse, Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index - CSCX - lost 28.97 points to close at 9,595.02 points.
Gainers beat losers 106 to 94, with 21 issues remaining unchanged at the port city bourse that traded 11.42 million shares and mutual fund units, turnover value of Tk 430.59 million.
babulfexpress@gmail.com
